Select banking stocks rebound; YES Bank, Union Bank surge up to 8%

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Banking shares market price today

 

Select banking shares rallied up to 8 per cent on the National Stock Exchange (NSE) in Friday’s intra-day trade on the back of heavy volumes in an otherwise weak market.

 

YES Bank shares surged 8 per cent to ₹19.74 on the back of two-fold jump in average trading volumes. The stock price of the private sector lender recovered 11 per cent from its intra-day low of ₹17.77. A combined 311.33 million equity shares changed hands on the NSE and BSE.

 

Share price of Union Bank of India (UBI) soared 6 per cent to ₹122.80 on the NSE. The market price of public sector bank bounced back 7 per cent from its intra-day low of ₹114.51. The average trading volumes at the counter more-than-doubled with a combined 29.55 million equity shares changing hands on the NSE and BSE.

 

State Bank of India, Canara Bank, Bank of India, Indian Bank, Bank of Baroda (BoB) and Punjab National Bank were trading higher by up to 2 per cent.  READ STOCK MARKET LIVE UPDATES TODAY

 

Nifty PSU Bank index rebounds 3% from day’s low

 

Nifty PSU Bank hit an intra-day high of 6,250.35, and has recovered 3 per cent from its intra-day low 6,062 on the NSE. At 11:27 am; Nifty PSU Bank, the sole gainer among sectoral indices, was up 1.32 per cent, as compared to 0.91 per cent decline in Nifty 50.

 

However, in the past one week, the Nifty PSU Bank index underperformed the market by falling 4.7 per cent, as against 1.4 per cent fall in Nifty 50.

 

On Tuesday, May 6, 2025, the Nifty PSU Bank index slipped 5 per cent and recorded its sharpest single-day decline in 11 months. The sharp decline in PSBs on Tuesday came after BoB reported 6.6 per cent year-on-year (YoY) decline in net interest income (NII) for the quarter ended March 2025 (Q4FY25) at ₹11,020 crore, which was much below estimates. 

 

Market volatility was further aggravated by escalating geopolitical tensions between India and Pakistan. The Supreme Court (SC) decision last Friday that rejected JSW Steel’s 2019 resolution plan for Bhushan Power and Steel (BPSL), declaring it as illegal, and ordered the liquidation of BPSL’s assets also dampened sentiment to some extent, analysts said.

 

YES Bank shares up 4 out of 5 trading days, here’s why

 

Share price of YES Bank was up in four out of five trading days. In the past one week, the stock rallied 11 per cent on Sumitomo Mitsui Banking Corp (SMBC) deal buzz.

 

According to reports, the Japanese banking giant was in advanced talks to acquire a majority stake in YES Bank. Reports indicated that the Reserve Bank of India (RBI) has verbally assured SMBC to retain a majority stake in YES Bank.

 

The bank is on a growth trajectory and routinely explores opportunities with various stakeholders, which are aimed at enhancing shareholder value. However, such discussions are preliminary and do not warrant a disclosure, YES Bank said on clarification of media reports.

 

The information pertaining to these discussions as set out in the article is speculative at this time and are not factually correct, the bank said.